British media giant Sky faces a significant setback as the UK Supreme Court rules the company acted in “bad faith” by registering overly broad trademarks, setting a precedent that could reshape how major brands approach intellectual property protection.
The unanimous ruling, delivered on Wednesday, overturns a previous Court of Appeal decision and declares certain Sky trademarks unenforceable. The dispute originated from Sky’s ambitious trademark registrations covering an extensive range of products, including antiperspirants, tuxedos, and biofuels – items far removed from their core media business.
Legal experts suggest this landmark decision will prompt substantial changes in corporate trademark strategies. Geoff Steward, partner at Addleshaw Goddard, emphasises that brand owners must undertake a “radical rethink” of their intellectual property protection approaches, marking the end of overreaching trademark monopolies.
The case emerged from Sky’s 2016 High Court claim against US technology firm SkyKick, alleging trademark infringement. The Seattle-based company countered by challenging Sky’s trademark validity, questioning registrations that extended to products such as shampoo and carbon monoxide detectors.
Despite Sky and SkyKick reaching a settlement in September, with SkyKick opting to rebrand following its ConnectWise acquisition, the Supreme Court proceeded with its judgment. Sky acknowledged the ruling, stating they had historically filed trademarks in accordance with guidance available at the time.
Kerry Russell, an intellectual property specialist at Shakespeare Martineau, describes the ruling as sending “shockwaves throughout trademark law”. The decision necessitates companies to carefully evaluate their trademark applications, ensuring they align with genuine business intentions rather than speculative future ventures.
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